Al and Bill Are the Only Workers in a Small

question 16

Multiple Choice

Al and Bill are the only workers in a small factory that makes geegaws and doodads.Al can make 5 geegaws per hour or 10 doodads per hour.Bill can make 4 geegaws per hour or 24 doodads per hour.Assuming that neither of them finds one task more odious than the other,

• A)Bill has a comparative advantage in producing geegaws and Al has a comparative advantage in producing doodads.
• B)Bill has a comparative advantage in producing both geegaws and doodads.
• C)Al has a comparative advantage in producing geegaws and Bill has a comparative advantage in producing doodads.
• D)Al has a comparative advantage in producing both geegaws and doodads.
• E)both have a comparative advantage in producing doodads.

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Definitions:

Limited Personal Liability

Limited personal liability means that an individual's financial responsibility for business debts or legal claims is restricted, often to the amount they have invested in a company.

Partners

Individuals who share ownership in a business, contributing resources or expertise and sharing profits and losses.

RULPA

The Revised Uniform Limited Partnership Act, which is a standardized set of laws to regulate the formation, operation, and dissolution of limited partnerships in the US.

Duty of Care

A legal obligation imposed on an individual to adhere to a standard of reasonable care while performing acts that could foreseeably harm others.